McCormick to Combine With Unilever Food Business in $45 Billion Deal

Deal Overview

McCormick & Company said on Tuesday that it planned to combine with Unilever’s food business to form a new entity with about $20 billion in annual revenue.

The stock-and-cash deal values Unilever’s food business at nearly $45 billion, including debt. The companies said they expected the transaction to close by the middle of next year.

The combined company would operate under the McCormick name, creating a larger spice-and-sauce business spanning condiments, seasonings and meal flavorings.

Brands and Business Impact

McCormick brings a dominant position in spices, along with French’s mustard and Stubb’s barbecue sauce. Unilever’s food business includes Hellmann’s mayonnaise and Knorr, known for bouillon cubes and seasonings.

The agreement would end Unilever’s time in the food industry after nearly 100 years. Last year, food accounted for roughly a quarter of Unilever’s total revenue.

In a call with Wall Street analysts and investors, McCormick chief executive Brendan Foley said the combined company would be a “focused, global flavor powerhouse, scaled, resilient and uniquely concentrated on flavor.” Unilever chief executive Fernando Fernández said the combination would strengthen the business’s competitive position.

Industry Backdrop

The transaction is the latest example of food companies turning to mergers, spin-offs and breakups as consumers continue to cut back on spending.

That reshaping has included Kellogg’s split into two companies in 2023. In 2024, Kellanova, the snacking business created in that separation, was acquired by Mars in a deal valued at $36 billion. Last year, Ferrero agreed to acquire WK Kellogg, the cereal business, in a deal valued at $3.1 billion.